In the first quarter of 2020, the consolidated revenue of the Dutch mining and metallurgical company Metinvest B.V. (Metinvest) decreased by 11% compared to the same period last year - to USD 2 billion 536 million.
In the press service of the company attributed the fall mainly to lower selling prices for steel products following global benchmarks and the impact of the COVID-19 pandemic on business activity and steel demand in some of the group's strategic markets.
In addition, resale volumes have decreased. In addition, selling prices for coal concentrate and coke fell following the decline in the benchmark for coking coal. Additionally, the structure of the iron ore sales portfolio and sales geography were negatively impacted by weak demand in Europe and a decrease in the premium for pellets.
At the same time, Metinvest increased its revenues from sales of commercial concentrate due to an increase in sales volumes and prices amid supply disruptions to the global market.
During the reporting period, revenue in Ukraine decreased by 6% compared to the same period last year to $ 726 million, mainly due to lower prices for metal products, coke and coal concentrate, as well as lower volumes of coke resale. At the same time, the share of Ukraine in the consolidated revenue increased by 2 percentage points (pp) - up to 29%.
In the first quarter of 2020, the Metals segment's revenue decreased by 14% year-on-year to USD 2 billion 018 million, mainly due to lower sales of flat products, coke and square billets. In general, the share of this segment amounted to 80% of total revenue, which is 1 percentage point lower compared to the same period in 2019.
Revenue in the Mining segment decreased by 2% year-on-year to USD 518 million, mainly as a result of lower sales of pellets and other products and services. This was partially offset by an increase in revenues from iron ore and coal concentrate. During the reporting period, the share of this segment amounted to 20% of total revenue, which is 1 pp higher than in the same period last year
In the first quarter of 2020, the Group's consolidated EBITDA was USD 373 million, which is 14% lower than the same period last year. This was primarily due to lower EBITDA in the Mining segment and an increase in elimination adjustments. At the same time, EBITDA of the Metals segment increased. As a result, in the first quarter of 2020, the share of the Metallurgical segment in total EBITDA (before adjustments for overhead costs and elimination and consolidation adjustments) reached 37% (16% in the first quarter of 2019), while the share of the Mining segment was 63% ( 84% in Q1 2019).
